Consumer prices rose 3.8% year over year in April, the largest increase since 2023, creating renewed pressure on the Federal Reserve’s dual mandate. Inflation is not limited to energy shocks; energy accounts for about 40% of the increase, while housing and rents remain problematic. Grocery prices have risen roughly 25% to 30% since early 2021, and some items like eggs have not returned to normal. Tariffs may also contribute to price pressures, though the effects are difficult to separate from other drivers. The situation suggests inflation may not settle quickly even if geopolitical tensions resolve.
"Oh, we keep waiting for the settle down, don't we? NADWORNY: (Laughter). BLYTH: You know, it was all meant to be transitory, and even life is transitory if you wait long enough, but 3.3% in March, 3.8% in April, I mean, it's getting up to 4%. This is serious. Energy is about 40% of it, but we still got a problem with housing, with rents."
"Depending on where you are in the country, a basket of groceries is basically up 25- to 30% over where it was at the beginning of 2021. Eggs never really went back to normal. So there's a whole host of price pressures that aren't just about the Strait of Hormuz."
"What about President Trump's tariffs? I mean, many have been invalidated, but not all of them. BLYTH: That's probably part of it. It's hard to actually parse this through. The best estimates that we"
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